IDEX Corporation (“IDEX”) has announced that it has entered into a definitive agreement to acquire Mott Corporation and its subsidiaries (“Mott”) for a cash payment of $1 billion (the “transaction”), subject to standard adjustments.
After accounting for the present value of anticipated tax benefits of around $100 million, the net value of the transaction is approximately $900 million.
This equates to about 19 times Mott’s projected full-year 2024 EBITDA and a mid-teens multiple based on the forecasted EBITDA for 2025. The deal is expected to enhance adjusted earnings per share in fiscal year 2026.
Mott is a prominent player in the design and production of sintered porous material structures and flow control solutions, boasting extensive applied material science expertise and process control capabilities.
For over 60 years, Mott has addressed complex engineering challenges by collaborating with some of the world’s leading technical brands and OEMs in fast-paced markets such as semiconductor, energy, water, and space.
“Mott’s operations align perfectly with IDEX’s focus on highly engineered, customizable mission-critical components aimed at scalable applications. Acquiring Mott marks a significant milestone in our growth, as we enhance our unique capabilities in applied materials technologies. Mott contributes advanced technical and application knowledge that will broaden our reach in high-value markets and create new organic growth opportunities. Our commitment to driving profitable growth through the enterprise-wide application of the 80/20 principle is expected to yield significant benefits,” stated Eric D. Ashleman, Chief Executive Officer and President of IDEX.
Mott, which is expected to generate approximately US$200 million of revenue in 2024, will join Idex’s Health & Science Technologies segment.
“We’re excited to join an industry leader with a strong record of helping customers solve their toughest problems,” said Boris Levin, president and CEO of Mott. “Mott brings applied material science, chemistry, and application expertise, an additive and complementary customer base, and a growing pipeline of opportunities. When combined with the scale of Idex, industry-leading positions, and deep technological know-how, this will yield meaningful synergies and benefits. Our culture and capabilities align with Idex, and our employees will add tremendous value to the company, just as they’ve driven Mott’s growth for generations.”
Source :IDEX Corporation
